That lack of revenue from mobile is, in the long-term, intolerable for Facebook. Of its 800 million users, 350 million access Facebook on mobile devices. None of them see ads, and Facebook's clients cannot reach them on their phones. (Facebook spokesperson Larry Yu declined comment.)
Google, meanwhile, is virtually printing money from mobile ads running on its Android system. CEO Larry Page said on his Q3 2011 conference call with Wall Street that Google would get $2.5 billion in revenues from mobile ads this year. Facebook, however, is the most popular app on Android. It generates $0 for either Google or Facebook.
So here's the situation: Google has provided a vast free medium for Facebook, and now Facebook intends to sell ads on it. How long will it be before Google wakes up and demands a cut of that revenue?
An undercard bout for the main event already happened at Apple. In October, Apple banned the use of Facebook Credits on iPhone and iPad because Facebook declined to pass on to Apple a 30 percent cut of those revenues. Credits are Facebook's in-game payment system that the social network wants everyone to use exclusively for financial transactions on Facebook.
Apple has proven that if you stand up to Facebook on the issue of who gets sales on a medium that product makers are providing for free, then Facebook backs down. And Apple needs as much money as it can get from mobile ads -- hence its recent discount of the entry level price for iAd.
The ball is now in Google's court.
SEE ALSO: Meet The Company That's Stealing Facebook's Ad Revenue
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